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Centuries before the beginning of the game, Numen came into conflict with the demon king Orgodemir. The battle between the two would rock the world, and through the slaughtering of many of Numen's followers the fiend had weakened him enough to be slain.

Planning ahead in case of such catastrophe, Numen created the Divine Shrine as a way for humanity to undo the damage Orgodemir would inflict upon the world and revive the heavenly father. Through the actions of the player, these events would come to pass and the demon king would be vanquished at the hands of mere mortals.

Astonished and delighted that his children had come so far on their own, Numen saw fit that humanity no longer needed his guidance and withdrew from the world. By reaching the end of the bonus dungeon in the post-game, the party can speak with the Almighty and challenge him to a friendly spar.

Being based on the god of the Abrahamic religions, some Western players have expressed confusion as to how a creator god such as Numen could be slain in any capacity. The reason for this (aside from story purposes of course) is because VII is written from an Eastern perspective, where the concept of omnipotent, omnipresent, infallible gods are considerably rarer.

As for how Orgodemir managed to overpower Numen, the implication is that the holy ghost draws his strength from the faith of his children. When Orgodemir and his forces set about destroying the world, this greatly reduced the world population and subsequently cut Numen's power drastically. As faith in the Almighty began to prosper thanks to the player's actions, Numen was revived and began to regain his missing strength.

So you finally found me...Yes, it's me. The one you've been looking for--the Almighty!Is that you Mervyn? Ho ho! It's been a while!Now, if you managed to find me here, you must know what happened to me. You must know that I was defeated...Though to be honest, I would say it was more of a draw...

Anyway, before my final battle, I entrusted the future of the world to you humans. I put my faith in you. You see, I knew you would reclaim it from the clutches of evil, even if I myself were defeated. And you did not disappoint me.

That's why I created the Divine Shrine. The one you did such a fine job of restoring--along with the rest of the world! What I mean to say is, humankind has no need of me anymore. The future is safe in your hands. Now go forth, to a bright and beautiful future of self-determination!

...

Unless...would you like to do battle against me? To see how strong and self-sufficient you really have become? Ho ho! I should warn you, I am quite the fighter these days. I've certainly come a long way, there's no doubt about that!